Uber and Digital Disruption in the Taxi Industry

This assignment delves into the effects of digital disruption brought about by Uber on the traditional taxi industry. It examines Uber's innovative business model, which connects riders and drivers through a mobile application, bypassing intermediaries and offering greater convenience. The analysis also highlights the safety concerns and legal challenges faced by Uber, while proposing recommendations to address these issues and enhance customer safety and driver security.

[Document title]

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Executive Summary
In this report, the case study of digital disruption in the transportation or the taxi industry has
been taken. The current report suggests different recommendations to deal with the abrupt
disruption in the industry. It also provides an implementation plan to based on the recommended
strategy.

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Table of Contents
Introduction......................................................................................................................................3
Introduction to the Case...................................................................................................................3
WCA before the digital disruption..................................................................................................4
WCA after the digital disruption.....................................................................................................6
Problem Identification.....................................................................................................................8
Recommendations............................................................................................................................8
Implementation Plan........................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The report explores the digital disruption, which occurred with the advent of Uber Company,
which is based on the sharing economy. It is a global taxi company with headquarters in San
Francisco, California. The company designs a mobile application which acts as a medium
between passengers and the taxi drivers. Uber is considered as the epitome of shared economy
and digital disruption as it has been one of the primary company to disrupt a current industry
abruptly (Pwc, 2017). Therefore, the phenomenon of digital disruption is also known as
Uberization. The Uber drivers have their own cars and they avail the mobile application to find
the customers. It is one of the pioneer company for Uberisation.
Introduction to the Case
The Uber application software is installed by both drivers and users for sharing cab. It is
convenient way of finding a taxi in the nearby area. It follows the upfront pricing method in
which the rider is quoted a price after he enters the drop location. Other than that, the fares of the
company are based on the dynamic pricing method in which the fares becomes high at the time
of high demand. The same route costs different to different users at different time.
However, the increased usage of Uber and other ride sharing companies has negatively affected
the value of taxi medallions in different cities. Previously, they used to play a cortical role in
providing taxi services at the specific time and duration. However, their profits have declined
over the time. Uber has also disrupted the taxi services and previous structure of taxi industry.

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Most of the taxi drivers have installed the application and charge the fare as per the policy of the
organization (Pemberton, 2017).
Although a large number of drivers are working with the organization, the legal arrangement is
that of contractors instead of employees. As a result, taxes, working hours and other benefits are
not provided to the drivers.
WCA before the digital disruption
Customers Products & Services
High-class people Travel services
Major Activities or Processes
Traditionally, in the taxi industry, the drivers used to operate independently or with the help of
medallion. The drivers used to stand at the major traffic area and the people can avail the services
through it. Other than that, the taxi drivers can be called through medallion or through their individual
contact numbers. The drivers can charge the riders as per the standard rates. They also had freedom to
accept or decline a ride.
Participants Information Technologies
There are several participants There is several critical Telephone and internet services

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in the taxi industry. The first is
government, which set the
rules and regulations in the taxi
industry. The set the standard
rates in the industry. Other
stakeholder is the medallion
who serves as a link between
the consumers and the taxi
drivers. The taxi drivers drive
their vehicle across the city.
The consumers are other
stakeholders. The
responsibility of safety and
security of the consumer is
biggest concern. Therefore, he
federation of the drivers as well
as governments of most of the
countries have made it
mandatory to conduct a
background check of drivers.
information required in the taxi
industry. It includes the
background check and
information of the drivers
(Stanton, Salmon, Walker &
Jenkins, 2017). The drop
location of the riders is also
necessary for running the taxi
system. Along with it, the drivers
must be aware of the latest rates
and price in the taxi industry.
are required to book a cab in the
industry (Zaphiris &
Kurniaswan, 2007).

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WCA after the digital disruption
Customers Products & Services
General public
With low rates, students and working
professionals have also started using the service
Ride sharing service, sharing with other customers,
food delivery services, outstation rentals
Major Activities or Processes
With the advent of Uber, the dynamics or the major activities of transport industry has been changed. A
mobile application is used to control the inflow of the customers and the taxi drivers. Previously, the taxi
drivers used to have issue in accessing the users or the cab drivers. The mobile application has increased
the comfort of both the cab drivers as well as the riders. The users can book a cab by sitting at the
comfort of their home. They can easily book a ride and ask the driver to pick them up from their home.
It is similar to a personalized chauffer service. On the other hand, the drivers can get immediate access
to all the users in the nearby location. They can select a customer as per the travel time or their direction
of route. The driver and the user do not have to further struggle over the charge and it is automatically

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calculated by the mobile application. The users can also choose to pay from their online payment
methods or through the cash. It increases the convenience and the comfort of the users.
Participants Information Technologies
There are several participants
in the taxi services. The
government plays a crucial role
in the price determination of
the services. The government
set some standard rates, which
are needed to be maintained by
the taxi drivers. They are called
the base rates. The taxi drivers
have to comply by it (Galer,
Ziegler & Galer, 2016).
Currently, Uber has been in
issues with several
governments because of
employment and the user
privacy laws. The drivers are
termed as independent
contractors and they are not
given employment benefits. In
several countries, the company
has been under the government
The information pertaining to the
users is confidential and should
not be shared or revealed. The
users share their name and
mobile number while booking the
cab. However, this information
should not be used for any
malicious purpose. As discussed
above, Uber follows a dynamic
pricing model. As a result, the
company needs to collect
information regarding the peak
hours at a particular location. It
also needs to collect information
regarding the personal
background of the drivers. This
information needs to be verified
and authenticated.
Uber is a technology-based
company and needs mobile
application to handle all the
operations. Other than that, it
needs appropriate infrastructure
and population so that the profits
can be generated through the
application (Khosla, Damiani &
Grosky, 2012).

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radar due to several cases,
which breaches the consumer
security.
Problem Identification
It can be identified that in the previous structure of the taxi industry, the customers as
well as the taxi drivers used to have issues to access each other. The intermediary used to take
unnecessary commissions. Moreover, the overall access to the riders was also limited. The taxi
drivers have access to limited profitability. The customers also do not have proper access to the
taxi drivers. However, there are several issues in the contemporary mobile application too. The
foremost issue is that of the customer safety. There should be additional features in the mobile
application, which assures the safety of the customers. The company should also take initiative to
assure the safety and security of the drivers.

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Recommendations
In order to address these issues, the company should make clear policies in its system. A
thorough background check should be made mandatory for the drivers. It will examine the
previous criminal record and other information for the drivers. It is an important step to maintain
the safety of the customers. Due to a few legal cases, a negative air is created surrounding the
company. The company should design appropriate marketing efforts so that this negative air is
diminished (Baines Fill & Page, 2013). The marketing campaign should be designed as per the
local culture and customer choice.
Implementation Plan
In order to conduct a background check for the drivers, the company should develop a clear
policy. All the subsidiaries and local branches should abide by the policy. Other than that, the
organization should also offer incentives and other employee motivation techniques to keep the
employees motivated. The company should design unique marketing campaign according to the
local culture of the country (Baker & Hart, 2016). It will increase the attractiveness of the
product. The company can also adapt the product as per the local culture of the country.
Conclusion
It can be concluded that digital disruption is a significant phenomenon, which can change the
dynamics of the entire industry. The taxi industry was disrupted with the advent of Uber, a ride

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sharing service. It develops a mobile application through which the consumers and the drivers
can access each other. Several recommendations have been identified in the report. An
implementation plan has been proposed to address the situation.

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References
Baines, P., & Fill, C. & Page, K. (2013). Essentials of Marketing. OUP Oxford.
Baker, M.J., & Hart, S. (2016). The Marketing Book. Routledge.
Galer, M., Ziegler, J., & Galer, M. (2016). Methods and Tools in User-Centred Design for
Information Technology. Elsevier.
Khosla, R., Damiani, E., & Grosky, W. (2012). Human-Centered e-Business. Springer Science &
Business Media.
Stanton, N.A., Salmon, P.M., Walker, G.H., & Jenkins, D.P. (2017). Cognitive Work Analysis:
Applications, Extensions and Future Directions. CRC Press.
Zaphiris, P., & Kurniaswan, S. (2007). Human Computer Interaction Research in Web Design
and Evaluation. Idea Group Inc (IGI).
Pwc. (2017). Uber, digital and disruption: what’s happening and why does it work? [Online].
Available at: https://digital.pwc.co.nz/ideas/uber-digital-and-disruption-whats-happening-and-
why-does-it-work/ [Accessed on: 4 January 2017].
Pemberton, A. (2017). Uber is everything that is wrong with disruption. The
Campaign. [Online]. Available at: https://www.campaignlive.co.uk/article/uber-everything-
wrong-disruption/1440077 [Accessed on: 4 January 2017].